Republican leaders of the House Financial Services Committee urged Congress this week to exclude a measure from the upcoming 2024 defense spending bill that could lead to new guardrails around U.S. outbound investments into China. They said existing sanctions and export control measures are sufficient to target Chinese military and technology companies, and any new investment restrictions would only limit American “control, influence, and intelligence gathering” in China.
Exports to China
A House Oversight Subcommittee on Economic Growth, Energy and Regulatory Affairs hearing focused on the need for more domestic mining of critical minerals, but administration witnesses noted that imports -- and subsidizing processing of domestically mined minerals -- are just as essential to uninterrupted supply.
The Biden administration should take several steps to boost U.S. agricultural exports, including by negotiating new free trade deals and better eliminating tariff and nontariff barriers, industry executives said during a President’s Export Council meeting this week. They also urged the administration to enforce existing trade agreements and more quickly make progress in reforming the World Trade Organization.
The Office of Foreign Assets Control this week sanctioned eight North Korean agents for their work facilitating sanctions evasion – six of them based in third countries – in an action the agency said comes in response to a recent military reconnaissance satellite launch by North Korea. The North Korean agents, including Russia-based Un Hyok Choe and Myong So, China-based Myong Chol Jang and Phyong Guk Kang, and Iran-based Kyong Il Kang and Sung Il Ri, engage in revenue generation and missile-related technology procurement in support of North Korea’s weapons of mass destruction program, OFAC said.
The Biden administration should investigate all Chinese lidar technology companies to determine whether they should be placed on the Entity List or made subject to U.S. investment restrictions, the House Select Committee on China said in a letter this week. The lawmakers said lidar, or light detection and ranging, is being used in autonomous systems and robotics but isn’t subject to export controls, potentially allowing a loophole for Chinese companies to acquire U.S. technologies for use in lidar systems that can aid the country’s military.
The U.S. sanctioned more than 20 people and companies this week for helping to finance Iranian military groups, including by helping the Iranian government sell oil and other commodities to overseas buyers. The Office of Foreign Assets Control said these sales help Iran generate billions of dollars for its Ministry of Defense and Armed Forces Logistics, its Iranian Armed Forces General Staff and the Islamic Revolutionary Guard Corps-Qods Force.
The European Commission on Nov. 28 imposed provisional antidumping duties on polyethylene terephthalate (PET) plastic product imports from China. The duties will range from 6.6% to 24.2%, and companies not given a specific rate will face the 24.2% dumping rate, the commission announced. It said the duties stem from an EU investigation provisionally finding that Chinese imports present "a threat of a clearly foreseeable and imminent injury to EU industry."
The French government didn't pressure the European Commission to launch the countervailing duty investigation on electric vehicle batteries from China announced in October (see 2310040012), said Martin Lukas, who heads the commission's trade defense directorate. Lukas, speaking on the commission’s Trade-Off podcast released Nov. 28, said the commission had been studying China’s increasing share of the EU’s EV battery market and said the investigation wasn’t brought because of urging from any single EU member state, despite some media reports.
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The World Trade Organization's Dispute Settlement Body on Nov. 27 agreed to Indonesia's request to set up a dispute panel to review the EU's countervailing duties on biodiesel from Indonesia, the WTO announced. The EU said it believes its duties "are fully justified, adding that it is confident its measures will be declared in line with WTO law," the WTO said. The U.S., the U.K., Norway, Russia, Thailand, Singapore, Japan, China, Canada, Argentina and Turkey reserved their third party rights to take part in the panel proceedings.